Digitalisation of Banking Services and Financial Inclusion Potential of Women Entrepreneurs in Dodoma Municipality, Tanzania

Abstract

Despite global advancements in digital financial technologies, women entrepreneurs in developing economies, particularly sub- Saharan Africa, still face persistent barriers to access financial services due to low financial literacy, limited resources, and restrictive social norms. This paper empirically examines the impact of digitalising banking services on financial inclusion among women entrepreneurs in Dodoma municipality, Tanzania. Underpinned by the Theory of Reasoned Action (TRA) and the Technology Acceptance Model (TAM) as a theoretical lens, this paper employs a cross-sectional design with a quantitative approach, surveying 117 registered women entrepreneurs at the Machinga Complex in Dodoma City Council using a structured questionnaire. Descriptive statistics and multiple linear regression were used to analyse the impact of digital finance platforms, mobile money services, and the agency banking model on women entrepreneurs’ financial inclusion potential. The findings reveal that mobile money is the most widely used digital service (89%), significantly enhancing access, affordability, and usage of financial services, accounting for 37% of the variance in women entrepreneurs’ financial inclusion. Digital finance platforms account for over 50% of financial inclusion, with agency banking contributing a modest yet significant 12.2%. The internet banking model remains the most underutilized due to limited digital literacy and infrastructure. The paper concludes that the digitalisation of banking services has a significant potential to bridge financial exclusion gaps among women entrepreneurs in Tanzania. Despite outstanding progress, gender disparities persist, necessitating targeted interventions. The paper recommends that policymakers and bank officials should enhance digital infrastructure, financial literacy programs, and tailored mobile money solutions to empower women entrepreneurs, supporting the inclusive economic development goals and the African Union Agenda 2030. The findings underscore the transformative potential of digital banking in addressing financial exclusion among underserved populations.